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It emerged from the Popular Front, a "radical" clandestine opposition movement of socialist and Arab nationalist orientation. Under the reform process initiated by Bahrain's King Hamad, the leaders of the Popular Front returned from exile to participate in the political process through the National Democratic Action.

The party's origins lie in the split within the Left in the Arab world in the 1960s, between a pro-Moscow camp and a pro-China camp, with the NDA's leaders backing Beijing. The party is the first licensed political group in any of the Arab states of the Persian Gulf.

Historically, the Left in Bahrain had been very strong, partly as a result of the creation of a local working class through the Kingdom's industrialisation with the discovery of oil in the 1930s; however the waning of Arab nationalism, the collapse of communism as an ideology and the rise of the Islamist Right have marginalised the NDA and robbed it of much of its traditional support. The party was established by returning exiles in 2002.[4]

The party suffered a very disappointing result in 2002's municipal elections when none of its candidates were elected in any constituency. Despite this, the NDA's leaders are widely respected and retain a great deal of influence in Bahraini society. The party boycotted 2002's parliamentary elections, but took part in the Bahraini parliamentary election of 2006; among its candidates was its vice president and former Harvard academic, Munira Fakhro, who contested an Isa Town constituency against Salah Ali of Al-Menbar Islamic Society.

The Highest Authority of Wa'ad is its General Assembly which all Wa'ad active members has the right to attend, which hold its meetings every 2 years. The General Assemby elects a Central Committee which holds the legislative power until the next General assembly. The Central Committee elects in its first meeting a General Secretary and a political bureau which act as governing body for the party until the next General Assembly.